Abstract

The research study takes a look at the effect of planning on organizational performance in businesses in Fako division of as area of study. However, the research study makes use of primary data of questionnaire and the data analysis technique adopted in the study is descriptive and regression analysis. The general objective of the study is to examine the effects of planning on organizational performance and also to evaluate the proper allocation of resources on organizational performance.

Data used in the study were collected through questionnaires from 34 organizations operating in Fako division. Descriptive analysis was used to analysis the data. Moreover, two hypotheses were tested using regression analysis and the results revealed that setting objectives affects organizational performance.

Therefore, the study concludes and recommends that managers time and attention should be focus on improving on the objectives and the proper allocation of resources of an organization for it is very important for both the survival and maintenance of profit margins in businesses, therefore organizations should measure performance on how well resources are combined and utilized to accomplish specific desirable results to be able to achieve its objectives on organizational need, articulates its strategies and carefully pursue them.

CHAPTER ONE

INTRODUCTION

1.1 Background Of The Study

Most firms desire growth in order to prosper and not just to survive. Most firms desire growth because it is seen generally as sign of success, progress. Organization growth is in fact used as one indicator for effectiveness for small and large businesses and is a fundamental concern of many practicing managers.

Ultimately, success and growth of and organization will be gauged by how well a firm goes to goals it has set for itself. Planning is a key driver of organizational growth, since it has to emerge as a strategic business partner helping the top management build an organization that is not just for today but for tomorrow and beyond. It is now working with the top management to propel the organization forward. Strategic planning should be reviewed and we stop looking at what is happening in other strategies and start looking at the best strategic planning practiced in large cooperates (Crosby, 1999)

Strategic planning is the backbone support to strategic management and it is a major process in the conduct of strategic management. According to Wagner (2006) The importance of strategic planning can be explained from four points of view including environmental scanning, strategic formulation, linking goals budgets and organizational performance need analysis to get a better understanding on how strategic planning is applied in practice and to improve performance.

One of the fundamental aspects of life is planning. it is practice to a greater or a lesser extend in our personal and daily lives such as we plan for our career, holidays, acquisition of assets and even the kind of life we hope to have and live in the future. For anything to be in existence or even succeed, whether and individual or a group, certain criteria have to be put in place to help direct their actions to a positive and profitable direction.

It is perceived that planning is a mediating force between organizational performance and its environments whereby it has become highly imperative for business organizations to adopt it as to enhanced productivity.

This is sequel to the fact that business enterprises under prevailing economic environments of today have to do all things possible to be efficient and survive. Faced with increasing competitions and dynamic and dynamic market conditions many businesses in Cameroon and other countries are increasing their efforts to understand how they can improve their performance to be competitive. Some strategic management and management scholars as well as policy makers have advocated for more planning practices beneficial to the business

As far as business and sustainability of an organization is concern, planning is an important process in the management and performance of an organization as it ensures that the define strategies of an organization are successfully implemented. Planning provides an organization or an enterprise with specific decisions, directions, activities and creating a path way to achieving competitive advantage over others.

The success of many businesses are based on the availability of good planning system, the absence of planning in an organization makes all business activities of the organization meaningless, time wasting and inadequate or over exploitation of the organizations economic resources.

The uncertain and constantly changing business environment and the emergence of many organization producing similar goods and services has made planning the most important aspect of the existence in an organization. Planning is very important in an organization as it helps the organizational planners to develop strategic methods and ways to handle and overcome uncertain events that may arise

In addition, strategic planning and its link to organizational performance has led to inclusive findings and have made a synthesized stream of research difficult to achieved. Porter (1985) also distinguished that despite the criticisms levelled against strategic planning during 1970s and 80, it was still use full and it only needed to be improved and re-casted.

Overtime, the concept add practice of strategic planning has been embraced wide reaching and across sectors because of its perceived contribution to organizational performance. Now our days, organizations both from the public and private sectors have taken the practice of strategic planning critically as a tool that can be employed to fast track their performances. Strategic planning is arguably an important ingredient in the conduct of strategic management. In this regard, Steiner (1979) noted that the frame work for formulating and implementing strategies is the strategic planning system.

Hence, according to Eadie (2004) strategic planning may be defined broadly or narrowly. However, this formulation still does not help managers in the public sector, for now the need to decide not only on the whether want to develop strategic plans but also whether they should approach such plans with a global perspective or with a narrow one. Thus, what seems to be a problem of semantics masks a fundamental question about the inclusion or exclusion of goal definition of strategic planning process.

According to Berry (1997) strategic planning is a tool for finding the best future for your organization and the best path to reach that destination. Quite often, an organization strategic planner already know of how much we go into a strategic plan. However, development of the strategic plan greatly help to clarify the organization’s plan and ensure that key leaders are all on the same script but how far more important than the strategic plan document is the strategic planning process itself.

A strategic planning process begins with an assessment of the current economic situation. First, examining factors outside of the company that can affect the company’s performance. O0ther researchers like Odongo and Datche (2015) searched and reveal that planning is appropriate, suitable and reasonable and accepted in the organization.  Many more researchers came out positive with their results though there are still gaps to be covered in the Cameroon economy.

1.2 Problem Statement

The difficulties faced by the organization and enterprises due to inadequate planning of the uncertain events of the future which in turn will be affect the existence and growth of the organization.

The fact that most of the organization created do not last for the purpose for which they were created some of them even in the growth stage face a lot of challenges and difficulties to the extent that they stumble and do not survive rivalries and competitions due to inadequate, they decline due to lack of poor planning of the organization.

Its observes also the executive implementing the planning strategies forgot to match its plans with the monetary resources which had to be factored in their organization which hindered growth (Stonner, 2008)

Issues have been raised by employees that the planning process tended to be flexible and rigid since it operated with in changing environment usually affect organization adversely. They perceive strategic planning process being unrealistic separated with actions which hindered growth, thus strategies not being linked with actions. (Brenda, 2008). But with restructuring of the organization and the implementation of a good planning system with strategies to overcome uncertain events in the long run. The organization will rise again and will be to complete with its competition rise in the market.

Based on the above, this study is aimed at providing answers to the following main question:

What is the effect of planning on organizational performance?

This research provides answers to the following specific questions:

1. What is the effect of setting objectives on organizational performance?
2. What is the effect of allocating resources on organizational performance?

1.3 Objectives Of The Study

With regards to the forgoing statement of the problem, the general objectives of this research is to examine the effects of planning on organizational performance. This study will tackle the following specific objectives which include:

1. To assess the effects of setting objectives on organizational performance.
2. To evaluate the essence of proper allocation of resources on organizational performance.

1.4 Research Hypothesis

This study will make use of the null hypothesis which is stated as:

Ho1: setting objectives does not affect organizational performance

Ho2: Proper allocation of resources does not affect organizational performance.